Wal-Mart Lays off 500 Workers at Headquarters

The clock hit zero on Thursday – and Foran is still at work. It’s trying to improve pricing and selection as well as beefing up customer service. The cuts would, however, account for a small fraction of the more than 18,000 current jobs at the Arkansas-based office. “While hard, I believe changes will help us become a more nimble organization that serves customers better”. It faces tough competition online from Amazon.com Inc and from grocery retailers and dollar stores.

Demonstrators, inlcuding Wal-Mart workers dismissed months ago, protest outside a closed Wal-Mart store in the Los Angeles-area suburb of Pico Rivera, Calif., Thursday, September 10, 2015. He’s studied everything from how easy it is to get a shopping cart to how individual items are placed on the shelves – things customers often aren’t paying attention to but can contribute to their overall impressions. The stores will reopen by November, and the retailer said it is encouraging former workers to reapply for their jobs.

Sam’s will focus on growing business with “higher household-income members” and eight consumer groups like large families and new moms and convenience store owners, said Ms. Brewer in the memo.

Though we are positive on the company’s long term fundamentals, the current scenario is alarming for its investors. The Wall Street Journal had reported this week that Wal-Mart was preparing a round of layoffs at its headquarters.

The layoffs are part of the retail giant’s plan to increase its competitive edge. But getting there hasn’t been simple. The company’s stock is still down 26 percent since January 2015, though, which could explain the decisive moves being made at Walmart headquarters. Target laid off 1,700 employees this year, largely at its headquarters in Minneapolis. Cost-cutting includes putting more pressure on suppliers who are now being charged storage fees for using Wal-Mart’s distribution centres, warehouses and shelf space. Last month, per Bloomberg, the company slashed workers’ hours at a few of its store locations in an effort to check its costs. “We need to become a more agile company that can easily adapt to shifting customer demand”.

In August the retailer reported a 15% drop in quarterly net profit from the previous year and cut its earnings outlook for the full year.